MITEK SYSTEMS INC (MITK) Stock Fundamental Analysis
NASDAQ:MITK - US6067102003 - Common Stock
10.17 USD
-0.12 (-1.17%)
10.17 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to MITK. MITK was compared to 282 industry peers in the Software industry. MITK has only an average score on both its financial health and profitability. MITK is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year MITK was profitable.
MITK had a positive operating cash flow in the past year.
In the past 5 years MITK has always been profitable.
In the past 5 years MITK always reported a positive cash flow from operatings.
1.2 Ratios
MITK has a better Return On Assets (3.47%) than 70.57% of its industry peers.
MITK has a better Return On Equity (6.53%) than 72.34% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.29%, MITK is in the better half of the industry, outperforming 71.99% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MITK is significantly below the industry average of 11.98%.
The last Return On Invested Capital (4.29%) for MITK is above the 3 year average (3.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 6.53% | ||
| ROIC | 4.29% |
ROA(3y)1.2%
ROA(5y)2.02%
ROE(3y)2.4%
ROE(5y)3.45%
ROIC(3y)3.13%
ROIC(5y)3.83%
1.3 Margins
Looking at the Profit Margin, with a value of 8.71%, MITK is in the better half of the industry, outperforming 73.05% of the companies in the same industry.
In the last couple of years the Profit Margin of MITK has declined.
With a decent Operating Margin value of 12.33%, MITK is doing good in the industry, outperforming 78.01% of the companies in the same industry.
MITK's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 85.59%, MITK belongs to the top of the industry, outperforming 93.62% of the companies in the same industry.
MITK's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.33% | ||
| PM (TTM) | 8.71% | ||
| GM | 85.59% |
OM growth 3Y-43.97%
OM growth 5YN/A
PM growth 3Y-34.17%
PM growth 5YN/A
GM growth 3Y-0.79%
GM growth 5Y0.08%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MITK is destroying value.
Compared to 1 year ago, MITK has less shares outstanding
MITK has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MITK is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.90 indicates that MITK is not a great score, but indicates only limited risk for bankruptcy at the moment.
MITK has a Altman-Z score (1.90) which is comparable to the rest of the industry.
MITK has a debt to FCF ratio of 2.74. This is a good value and a sign of high solvency as MITK would need 2.74 years to pay back of all of its debts.
The Debt to FCF ratio of MITK (2.74) is better than 65.96% of its industry peers.
A Debt/Equity ratio of 0.64 indicates that MITK is somewhat dependend on debt financing.
The Debt to Equity ratio of MITK (0.64) is worse than 68.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.43
WACC10.05%
2.3 Liquidity
A Current Ratio of 1.14 indicates that MITK should not have too much problems paying its short term obligations.
With a Current ratio value of 1.14, MITK is not doing good in the industry: 67.38% of the companies in the same industry are doing better.
MITK has a Quick Ratio of 1.14. This is a normal value and indicates that MITK is financially healthy and should not expect problems in meeting its short term obligations.
MITK has a worse Quick ratio (1.14) than 66.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
MITK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.90%, which is quite impressive.
Measured over the past years, MITK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.42% on average per year.
MITK shows a small growth in Revenue. In the last year, the Revenue has grown by 6.98%.
MITK shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.26% yearly.
EPS 1Y (TTM)35.9%
EPS 3Y8.58%
EPS 5Y17.42%
EPS Q2Q%-12%
Revenue 1Y (TTM)6.98%
Revenue growth 3Y12.83%
Revenue growth 5Y15.26%
Sales Q2Q%1.67%
3.2 Future
The Earnings Per Share is expected to grow by 5.65% on average over the next years.
MITK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.71% yearly.
EPS Next Y-4.02%
EPS Next 2Y6.79%
EPS Next 3Y5.65%
EPS Next 5YN/A
Revenue Next Year3.23%
Revenue Next 2Y5.38%
Revenue Next 3Y5.71%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MITK is valuated reasonably with a Price/Earnings ratio of 9.59.
Based on the Price/Earnings ratio, MITK is valued cheaply inside the industry as 90.43% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.17, MITK is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.29, the valuation of MITK can be described as very reasonable.
Based on the Price/Forward Earnings ratio, MITK is valued cheaply inside the industry as 92.20% of the companies are valued more expensively.
MITK's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.59 | ||
| Fwd PE | 9.29 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MITK indicates a rather cheap valuation: MITK is cheaper than 93.97% of the companies listed in the same industry.
MITK's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MITK is cheaper than 95.74% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.32 | ||
| EV/EBITDA | 6.98 |
4.3 Compensation for Growth
MITK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.55
EPS Next 2Y6.79%
EPS Next 3Y5.65%
5. Dividend
5.1 Amount
MITK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
10.17
-0.12 (-1.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners77.26%
Inst Owner Change0.88%
Ins Owners2.14%
Ins Owner Change4.16%
Market Cap464.26M
Analysts81.67
Price Target13.26 (30.38%)
Short Float %3.95%
Short Ratio4.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)25.57%
Min EPS beat(2)14.53%
Max EPS beat(2)36.62%
EPS beat(4)4
Avg EPS beat(4)35.26%
Min EPS beat(4)1.42%
Max EPS beat(4)88.46%
EPS beat(8)5
Avg EPS beat(8)13.54%
EPS beat(12)8
Avg EPS beat(12)16.86%
EPS beat(16)12
Avg EPS beat(16)17.43%
Revenue beat(2)2
Avg Revenue beat(2)4.55%
Min Revenue beat(2)1.85%
Max Revenue beat(2)7.26%
Revenue beat(4)4
Avg Revenue beat(4)3.14%
Min Revenue beat(4)0.88%
Max Revenue beat(4)7.26%
Revenue beat(8)4
Avg Revenue beat(8)-0.56%
Revenue beat(12)7
Avg Revenue beat(12)3%
Revenue beat(16)9
Avg Revenue beat(16)3.17%
PT rev (1m)0%
PT rev (3m)-0.76%
EPS NQ rev (1m)-1.95%
EPS NQ rev (3m)-29.37%
EPS NY rev (1m)4.23%
EPS NY rev (3m)2.65%
Revenue NQ rev (1m)-4.19%
Revenue NQ rev (3m)-9.29%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.59 | ||
| Fwd PE | 9.29 | ||
| P/S | 2.61 | ||
| P/FCF | 8.32 | ||
| P/OCF | 8.15 | ||
| P/B | 1.95 | ||
| P/tB | 7.86 | ||
| EV/EBITDA | 6.98 |
EPS(TTM)1.06
EY10.42%
EPS(NY)1.09
Fwd EY10.76%
FCF(TTM)1.22
FCFY12.02%
OCF(TTM)1.25
OCFY12.27%
SpS3.9
BVpS5.2
TBVpS1.29
PEG (NY)N/A
PEG (5Y)0.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.47% | ||
| ROE | 6.53% | ||
| ROCE | 8.86% | ||
| ROIC | 4.29% | ||
| ROICexc | 7.39% | ||
| ROICexgc | 32.57% | ||
| OM | 12.33% | ||
| PM (TTM) | 8.71% | ||
| GM | 85.59% | ||
| FCFM | 31.33% |
ROA(3y)1.2%
ROA(5y)2.02%
ROE(3y)2.4%
ROE(5y)3.45%
ROIC(3y)3.13%
ROIC(5y)3.83%
ROICexc(3y)4.74%
ROICexc(5y)6.29%
ROICexgc(3y)31.43%
ROICexgc(5y)27.46%
ROCE(3y)4.04%
ROCE(5y)4.94%
ROICexcg growth 3Y-20.78%
ROICexcg growth 5YN/A
ROICexc growth 3Y-40.5%
ROICexc growth 5YN/A
OM growth 3Y-43.97%
OM growth 5YN/A
PM growth 3Y-34.17%
PM growth 5YN/A
GM growth 3Y-0.79%
GM growth 5Y0.08%
F-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.64 | ||
| Debt/FCF | 2.74 | ||
| Debt/EBITDA | 4.01 | ||
| Cap/Depr | 7.33% | ||
| Cap/Sales | 0.66% | ||
| Interest Coverage | 18.76 | ||
| Cash Conversion | 149.79% | ||
| Profit Quality | 359.8% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 1.9 |
F-Score7
WACC10.05%
ROIC/WACC0.43
Cap/Depr(3y)7.2%
Cap/Depr(5y)9.44%
Cap/Sales(3y)0.74%
Cap/Sales(5y)0.83%
Profit Quality(3y)714.7%
Profit Quality(5y)578.49%
High Growth Momentum
Growth
EPS 1Y (TTM)35.9%
EPS 3Y8.58%
EPS 5Y17.42%
EPS Q2Q%-12%
EPS Next Y-4.02%
EPS Next 2Y6.79%
EPS Next 3Y5.65%
EPS Next 5YN/A
Revenue 1Y (TTM)6.98%
Revenue growth 3Y12.83%
Revenue growth 5Y15.26%
Sales Q2Q%1.67%
Revenue Next Year3.23%
Revenue Next 2Y5.38%
Revenue Next 3Y5.71%
Revenue Next 5YN/A
EBIT growth 1Y523.73%
EBIT growth 3Y-36.78%
EBIT growth 5YN/A
EBIT Next Year20.88%
EBIT Next 3Y18.43%
EBIT Next 5YN/A
FCF growth 1Y48.45%
FCF growth 3Y-5.59%
FCF growth 5Y18.06%
OCF growth 1Y48.2%
OCF growth 3Y-5.32%
OCF growth 5Y17.33%